TORONTO, Nov. 30, 2015 /CNW/ - TravelBrands Inc. ("TravelBrands" or the "Company"), a leading Canadian 'super-distribution' network comprised of ten tour operator wholesale and five retail travel brands, announced today that it has filed materials requesting an extension of the stay of proceedings from the Ontario Superior court of Justice (the "Court") under the Companies' Creditors Arrangement Act ("CCAA") until February 29, 2016.
The extension of the Stay Period will allow TravelBrands to continue to operate the business as usual as it moves towards exiting from CCAA protection, and provides the time necessary to resolve a disputed claim from Gibralt Capital Corporation (the "Gibralt Claim"). A hearing date to determine the validity of the Gibralt Claim has been set by the Court for January 5, 2016, which occurs after the expiration of the current Stay Period.
TravelBrands is confident that the Company will receive a favorable outcome from the Court at the hearing on January 5, 2016. TravelBrands would then exit CCAA via its Plan of Compromise or Arrangement (the "Plan"), which would see all Affected Creditors paid in full, and which was overwhelmingly approved at a Meeting of Affected Creditors on October 30, 2015. However, if the disputed Gibralt Claim cannot be adequately resolved, TravelBrands may revisit whether it is necessary to revoke the Plan and seek the Court's approval of a sale process or credit bid.
The Court-appointed Monitor, KPMG Inc., continues to oversee the business and financial affairs of the Company and supports the extension of the Stay Period. Additional information regarding the Company's proceedings under the CCAA, including court materials and the Plan, are publicly available on the Monitor's website at www.kpmg.com/ca/travelbrands.
About TravelBrands Inc.
TravelBrands operates under several wholesale and retail brands, including, among others: Sunquest, BelAir Travel, Wholesale Travel Group, Last Minute Club, Holiday House, FunSun Vacations, Encore Cruises, Boomerang Tours, ALBATours, Exotik Tours, Intair, Network and Carte Postale.
SOURCE TravelBrands Inc.
For further information: Company: Joe DeMarinis, President, TravelBrands Inc., 905-283-6027; Media: English - Joel Shaffer, Longview Communications, 416-649-8006; French - Daniel Larouche, 514-286-4882